TaxTMI 
TaxTMI 
1993 (2) TMI 219
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.... (Appeals), who has held that the product was classifiable under TI 68 of CET. 5. It was the department's contention that PVA was excisable and classifiable under TI 15A and liable to duty. Hence the appeal. 6.The Tariff Item 15A, as it stood during the relevant period, covered : "Artificial or Synthetic resins and plastic materials; and other materials and articles specified" therein, including, inter alia, (1) "Condensation, polycondensation and polyaddition products, whether or not modified or polymerised, and whether or not linear" (for example, unsaturated polyester etc.) "Polymerisation and co-polymerisation products." (for example, polyethylene, polyvinyl chloride, polyvinyl acetate, polyvinyl chloroacetate and other polyvinyl derivatives etc.)" 7. It was their submission that polyvinyl alcohol is a derivative of polyvinyl acetate. It is manufactured by polymerisation processes. It is also linear and resinous. Hence it merited classification under Tariff Item 15A and was liable to duty accordingly. 8. It was also their submission that the Collector (Appeals) has examined the scope of exclusion clause... "Alcohol, all sorts, incl....
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....1984 but the same was applicable only to commercially known alcohols falling under TI 68. 15. The learned Collector (Appeals) has on one hand considered it that PVA being an alcohol is covered by the language of TI 68 (a) and is statutorily exempt from duty. On the other hand he had restricted his findings for the period prior to the issue of Notification 121/81, dated 27-6-1981. This is improper for it would mean that the product will fall under TI 68 prior to 27-6-1981 but not thereafter. As there was no material change either in TI 68 or TI 15A and the order of the Collector (Appeals) was vague in this respect. 16. The learned Departmental Representative filed a copy of Collector's letter dated 26-11-1991 enclosing the process of manufacture of polyvinyl alcohol and reiterated that polymerisation takes place during conversion of vinyl acetate into polyvinyl acetate. 17. In response to questions from the Bench, he stated that after the polyvinyl acetate is hydrolised polyvinyl alcohol is formed but at this stage no further polymerisation takes place. Only by this process acetate gets converted into alcohol. 18. He further stated that the Department....
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.... Advocate stated that in the market also polyvinyl alcohol is known and treated as alcohol only and not as plastic or resin or a derivative of any of the chemicals mentioned in Item 15A. In this connection he would also like to rely on the order of Collector (Appeals). 27. It was his contention that the Assistant Collector had erred in understanding the chemical process and nature of the material in question and in treating it as a type of resin. 28. The learned Counsel also drew attention of the Bench to various observations and finding in the case of Sun Export Corporation, Bombay [1986 (26) E.L.T. 1042] and stated that the basic question with reference to Item 68 has not been answered. He would also like to state that in this order basically both the contending sides were concerned with the dispute relating to the issue as to whether the product was classifiable under 15(A)(1)(i) or 15A(1)(ii) whereas in their case initially a question arose as to whether the relevant item was 15A or 68. It was their contention that neither of the two entries are attracted. He also drew attention to the extracts from the Technical Literature and stated that there is no doubt or d....
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....nging to the family of organic polymers...... The resin is used in sizing agents that confer resistance to oils and greases upon paper and textiles, to make films resistant to attach by solvents or oxygen, as a component of adhesives and emulsifiers and as a starting material for the preparation of other resins." "Polyvinyl alcohol differs from most polymers in that it cannot be prepared directly from a simple compound of low molecular weight because the appropriate monomer, vinyl alcohol cannot be prepared. Polyvinyl alcohol is made by treating polyvinyl acetate with acids or alkalies; which remove the acetate groups without disrupting the long chain structure of the molecule. 34. From the above it can be easily seen that chemically speaking the product is a polyhydric alcohol in the nature of a water soluble synthetic resin belonging to the family of organic polymers. 35. We have already noticed that in the multi stage process by which it is produced, polymerisation takes place at one stage and the modification of the ester into alcohol takes place at another stage resulting in the formation of this polyvinyl derivative. 36. We also find that TI 15A CET....
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....sp;With reference to the above context, we observe that it is well settled that in a statute the words and terms are to be considered in the sense they are normally used. And in a taxation statute apart from the common parlance we may also see in what sense they are used in trade parlance by the persons who usually deal with them in the normal course of their business. 39. It is also well settled that if one has to choose between the meaning or the sense in which a words is commonly understood, and the sense or meaning attached to it for scientific or technical purposes in that case normally the former has to be preferred to the latter unless intention of the legislature to the contrary could be shown. Keeping this in mind let us see how the word `alcohol' has to be understood and how the clause `alcohol, all sorts' including liquors for human consumption has to be construed. 40. To our mind a common man considers `alcohol' to be a product in the nature of an alcoholic preparation including liquors, spirits and alcoholic beverages (as for example, whisky, beer, gin, rum and wine etc.). And if a common man was asked to purchase alcohol, we are reasonably sure, that h....
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....on" mentioned in Item 68, CET, could not be also so read or interpreted as to include organic chemicals of the nature of polyhydric alcohol for the same reasons. 50. Hence the item in question i.e. polyvinyl alcohol can only be considered as an excisable product which is neither hit by constitutional provisions nor by the exclusion clause Tariff Item 68, CET. 51.Further being a resinous polymer it is classifiable under the Tariff Item 15A, CET. 52. As far as the Bombay High Court judgment in the case of Raman Kantilal Bhandari [1987 (27) E.L.T. 617 (Bom.)] is concerned, it is observed that this case relates to import of Pentaerithericol in 1984. The assessment of the Item under Tariff Item 29 of the Customs Tariff was not challenged; but a question did arose whether for the purpose of countervailing/additional duty the item attracted Tariff Item No. 68, CET. 53. The importers claim for refund was rejected by the Assistant Collector as time barred under Section 27, CA '62. He filed a writ petition before the Hon'ble High Court of Bombay and urged, inter alia, that the CEGAT had held in April, 1983 that Tariff Item 68 refers to `alcohol, all sorts' and all ....
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....cluded that the exclusion clause of the Tariff Item 68(a) not only covers ethyl alcohol but others also. 59. However, we have extended our inquiry further to show what these other products are. In this respect it is essential to emphasise, even at the point of repetition that in spite of an opportunity being given the department had not produced all the relevant material before the Hon'ble Court and had merely relied upon the affidavits of the Departmental Officers and certificates of Dr. Nair which were not found acceptable. And, in respect to specific query from Hon'ble Judge, stated that there is no other material available. 60. This was rather surprising as the Customs Officers of all the people could not possibly be unaware of the existence of B.T.N./C.C.C.N. an internationally recognised work utilised by Indian Customs day and night. Moreover, it appears that the attention of the Hon'ble Court was also not drawn towards even T.I. 15A CET - a relevant provision of law and one which was a technical item covering organic chemicals of specified types and amenable to technical interpretation. (It is also noteworthy in this context that classification of the product....